Last week, major global news outlets reported that Lionel Messi’s deal with Paris Saint-German would include something unusual: a signing-on fee partly paid in “cryptocurrency fan tokens”.
These tokens, issued by a company called Socios, give holders the opportunity to vote on club issues but they also rise and fall in value when traded online.
The “$PSG” tokens surged in value in the days before Messi’s move was confirmed, making real cash for savvy traders. Posts in social media channels speculated that the price would “explode” after the announcement.
Less widely reported was what happened once the deal was done: the tokens plunged in value. Traders who got in early made money but those who got in late lost out.
“We see the price of tokens being driven up in anticipation of football events like signings or titles,” said Martin Calladine, author of The Ugly Game. “Traders cash them out, prices crash, and fans are left sitting on losses — victims of their enthusiasm for their clubs.”
Adverts for Socios fan tokens appear on the front of Inter Milan and Valencia shirts, while sponsorship deals have been struck with the likes of Barcelona, Juventus and Atletico Madrid, as well as Manchester City, Arsenal and three other Premier League clubs. And yet very few people appear to understand very much about Socios or how the tokens actually work.
